The Finance Ministry’s latest review of the Indian economy reveals that over 1.14 lakh startups in India have generated more than 12 lakh jobs to date.
In the report titled, ‘The Indian Economy: A Review January 2024’, the Department of Economic Affairs said that the 1.14 lakh startups recognized by the government under the ‘Startup India initiative’ created more than 12 lakh jobs (as of October 2023).
The state-owned ecommerce platform, Open Network for Digital Commerce (ONDC), has recorded over 63 lakh transactions until November 2023, as stated in the document.
Despite global challenges in 2023, including valuation issues, limited IPOs, regulatory changes, and macroeconomic and geopolitical trends, India maintains its position as the third-largest tech startup ecosystem globally. The country witnessed the founding of over 950 tech startups last year.
According to a recent report by Nasscom in collaboration with Zinnov, the cumulative funding for over 31,000 tech startups has surpassed $70 billion from 2019 to 2023.
“In 2023, despite facing global economic and regulatory challenges, Indian tech startups have prioritised the imperative of enhancing their business fundamentals, driving profitability and growth,” said Debjani Ghosh, president of Nasscom.
“The proliferation of tech startups in tier 2 and 3 cities marks the ecosystem’s resilience,” she added.
In 2024, tech startup founders anticipate sustaining revenue growth through careful steps to optimize expenses and enhance profitability, especially for B2B tech startups.
The trend of investing in deeptech is expected to rise further this year. Notably, 70% of startup founders are incorporating artificial intelligence (AI) into their solutions, particularly leveraging generative AI (GenAI) acceleration.
While funding becomes more limited for the Indian startup ecosystem overall, the surge in Artificial Intelligence (AI) offers a renewed opportunity for entrepreneurs and founders. The sector receives support from the government, providing a boost to innovation and growth in the country.
